Local banks reveal the number of loans that aren’t being repaid
Amid cries that local banks are predatory and continue to oppress residents with unfavourable interest rates and stringent rules, the House of Assembly has been presented with figures which give an idea of the loans banks have issued and the ones that are not being serviced.
The information was revealed to the House of Assembly recently after Opposition Leader Ronnie Skelton asked Financial Services Minister Lorna Smith to give information on the “bad debt” that the seven local banks are carrying in the territory.
Smith presented information that the banks shared at the end of the first quarter of 2023 (up to March 30). The information shows that the Republic Bank had issued 2,747 loans, the most loans of all the banks. Of this number, they reported 167 non-performing loans (bad debt).
First Caribbean Bank reported the second highest number of loans for the reported period, with 1,536 loans – 94 of which are non-performing.
Banco Popular reported 1,971 and 107 non-performing debts, while National Bank reported 1,367 and 113 non-performing ones.
As for First Bank, they reported 854 loans for the first quarter of 2023, 45 of which are non-performing.
VP Bank and Bank of Asia had the lowest number of loans and bad debt: VP Bank reported 150 loans and four non-performing ones while Bank of Asia reported nine loans and zero non-performing debts.
There have been calls for the government to lobby local banks so they can reduce their interest rates and relax policies and practices, which many residents find burdensome. Minister Smith said she is committed to lobbying the banks and has held discussions with them when she took office earlier this year.
However, no concrete changes have been reported by Minister Smith to date.
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A lot of these loans are bad because of trickery and dishonesty by these banks. They gave the honorarium and then demanded that you pay it in one payment rather than put it at the back of the loan which was what was agreed.
So when you look your loan is three months behind and placed as nonperforming. The Financial Services banking regulation department is an f.cking joke .
No wonder international agencies have to be on them to cleanup the industry. Those numbers still aren’t bad compared to other places where the cruel policies that they have implemented here are not implemented there.
Interest rates here a low as hell compared to the us. My car loan here is barely 6%. In the US it would be 3 times that. Problem here is there is very low financial literacy. People don’t know how to access credit and banking services properly. They stand in line for all sorts of things that can be done online and then complain. They borrow more than they can afford, don’t save, then blame the bank when they get in trouble. Knowledge is power people.
FCIB has the 3rd highest loans issued – not second (correction).
This is * bank. The branch manager is useless and needs to go. * bank needs to pack up and leave.
The only local bank is the Bank of the Virgin Islands, and there is no information on this one. How comes? Is it owned by politicians?
Where is the information on the Population census? Or the same-sex referendum? And marriage between same sex court case?
The only local bank is the Bank of the Virgin Islands, and there is no information on this one. How comes? Is it owned by politicians?
Where is the information on the Population census? Or the same-sex referendum? And marriage between same sex court case?
Lobby them how? You got to dictate what you going to allow and what you not going to allow. Let them decide if they going to comply or pack up shop.
The interest rates here are not lower than in the US. Not even at the US banks, and that’s for both loans and credit cards. You are right though, financial literacy is important and in that regard your advice is spot on!
Why did they leave out the National Bank??? It probably has more non-performing loans than the others combined, which needs to be rectified; in any other jurisdiction it would have been shut down!
Since when do Ministers lobby private industry? Shouldn’t it be the other way around. Legislators should Legislate. Just set and the laws please.
Y’all just does be posting and NOT reading…National Bank’s numbers were mentioned right after Banco popular. NB has the highest default rate at nearly 10% ..no big surprise since all the politicians and their friends does borrow from there and NEVER pay back!!
People not stupid well at least those that know what’s coming or going on right now in the world .. if your not looking into alternative news I’m sorry for you .. We are all slaves to this system that was created in the mid 1900s look into it .. maritime law came in and took over our lives. We are not suppose to be paying for $@!?.. Go look on YouTube for meet my straw man
https://youtu.be/ME7K6P7hlko?si=BBZQQu3g8LohfN6N
I say this quite often. Regularly people would complain about their comprehensive insurance premium on their vehicles. Usually a one time payment less than $1000 which insurance companies usually allow them to pay in installments. In the U.S. my monthly insurance even with the vehicle paid in full was over $1000. They have it good here in terms of insurance rates and payments.
However, wages here are very low. There isn’t much room to move around financially for many. They are struggling day in and day out to make ends meet & with the stress of that they can’t even begin to think about financial literacy. This is a layered issue. Starting with minimum wage come straight up.
You guys are so quick to comment that you do not f**king read. The article clearly states the numbers for National Bank BVI:
“…..while National Bank reported 1,367 and 113 non-performing ones.”
If one should drive around Tortola you will see a lot of abandoned houses and lots of unfinished or some just need repairs houses. Why is that? Can the owners not rent it and make some money or the unfinished ones can they not just repaired it and rent them out.
You have bad credit sir
Reason why your interest rate is so high
Lorna in your corner needs to lobby the insurance companies. Property insurance is what is rediculous. I soon cannot pay that! I can stay away from bank loans, but must insure my properyy.
in the BVI are either local or foreign. The NBVI can’t leave just dissolve. All the others can just pack up and leave any time. Fortunately most ex-pats don’t need to deal with either type of BVI banks due to their overseas account in large international banks that are profitable by taking very few risks.
…Do these statistics factor in persons that would’ve left the Territory, leaving all obligations behind? Also I think that there’s this misconception that BVI is this wealthy place and everybody has money. The BVI is still feeling the impact of Irma and COVID but people pretend that all is well.
Bologna, despite interest rates changing with the economy you exaggerating. I know persons that are locked in with mortgages between 2 and 3 percent rates. I recently paid off a loan in america I was at 4%. America has always had better interest rates for both borrowing and saving. Cds are between 3 and 5 %. Take it from someone that knows.
Try lobbying to lower the US Prime lending rate first.
The financial, banking and business professional always recommend to business to expect a 10% lost / write-off annually, cater for it. None of the bank suffered that 10% expected loss or write off, so they are all doing very well. With rocking up profits…When it comes to giving loans first bank always had the worse record..Kudos to Republican bank, you are helping, you are doing well much better than the rest, Your write off is just about 6% much lower than the experts say..
Sounds like you are a person with knowledge. If banks lose 10% as per your “guidance” do you mind losing annually 10% of your deposit? That’s called banking..
For most of them is the 350% to 400% increase in the insurance annual premiums on the properties after the 2017 storms, then followed by the global economic slow down by the pandemic in 2021.
@ Jokes,
How can you borrow from a bank more than you can afford to pay? This means that the bank(s) giving the loan did not calculate your debt to income ratio?, didn’t credit check or anything of the sort?
Sometimes, some peoples’ comments really throw off a person.
I had a personal loan which I paid off recently and noticed towards the end, my payment kept increasing and I enquired as to why. I was told that whenever the US prime lending rate changes so does their rate. Their lending rate is 8% above US prime ( how is that ethical) If the bank loses 10% annually big, fat, hairy deal. How much are they making off the investments from our deposits while they pay 2-3% interest ???why don’t they show their balance sheets… the real ones. BANKS DON’T LOSE!! Miss me with the sad story about non- performing loans. How about improving their customer service and have trained professionals that actually care about their customers??? The tellers could care less about customers. The supervisors are a JOKE… in EVERY BANK. None are better than any and I have accounts in 4 of them so I experience first hand their nonchalance. The last of the good days was when scotia staff used to meet in the lobby in the morning for their pep rally while people waiting outside…lol.
Better financial credit lending requirements is needed. Need Persons who understand underwriting and not giving/ recommending loans to friends or family. Review of credit policies maybe they are too flexible for based on current situations.An Underwriter is a big deal. Tier pricing and qualifying systems still need to be reviewed. That’s a lot of non performing loans. There will always be change of circumstances for individuals. questions begs, how best will the creditor help the applicant to mitigate making payments. Collections is a hard role in banking. Every bank operates as it own business. Each need to find a loss litigation plan to help!
“while National Bank reported 1,367 and 113 non-performing ones.”